Imagem de um campo de plantação com silos ao fundo

With the advent of Law 14.112 of 2020, the rural producers are expressly included as a legitimate party for the distribution of a Court-Supervised Reorganization process, provided that the requirements required by the legal rules are met.

However, we need to keep in mind that Court-Supervised Reorganization is not necessarily an alternative to protect the business and cannot be used in a way that distorts the institute, as a standard recipe for a solution, especially for such a particular sector that can generate disastrous impacts on the market.

The Law was not created considering this scenario related to the Rural Producer, which causes a series of gaps and when we try to fit such a general Law to an activity as specific as Agribusiness, it is necessary to make many concessions to accommodate the situations that arise and that distorts the purpose of the Law.

Having overcome this point, I understand that the discussion we should be promoting is not about Court-Supervised Reorganization, but about management tools and good governance practices, which will enable the professionalization of Producers, improving their strategic vision, allowing property, financial and own business continuity risks are mitigated.

Today we have a thriving Agribusiness, which has been undergoing important transformations, through the modernization of production. The sector is responsible for the positive balances of the Brazilian trade balance, breaking crop records, and is among the largest food producers in the world and as a consequence – to this whole process – relationships within the entire Agro chain are also changing, gaining a new perspective.

Therefore, it has never been more important to adopt measures that guarantee transparency, legal certainty and predictability. This is because these premises provide opportunities for the advancement and consolidation of important guidelines, such as democratization and access to credit and rural insurance, fundamental pillars for the recovery in a moment of crisis.

Our role as legal practitioners is to expand dialogue, facilitate negotiations, reconnect links in the agro-industrial chain and, above all, encourage the adoption of good practices that will allow the Producers to combine all their efficiency in the field with a robust governance structure that guarantees the continuity of the business.

 

Available at: https://br.lexlatin.com/reportagens/recuperacao-judicial-alternativa-para-o-agronegocio

Autor: Priscila Ziada Camargo Fernandes • email: priscila.camargo@ernestoborges.com.br • Tel.: 65 3648-012367 3389-0123

COURT-SUPERVISED REORGANIZATION: AN ALTERNATIVE FOR AGRIBUSINESS?

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COURT-SUPERVISED REORGANIZATION: AN ALTERNATIVE FOR AGRIBUSINESS?

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